The global technology frontier: productivity growth and the relevance of Kirznerian and Schumpeterian entrepreneurship

We evaluate how country-level entrepreneurship—measured via the national system of entrepreneurship—triggers total factor productivity (TFP) by increasing the effects of Kirznerian and Schumpeterian entrepreneurship. Using a database for 45 developed and developing countries during 2002–2013, we emp...

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Detalles Bibliográficos
Autores: Lafuente González, Esteban Miguel|||0000-0001-5889-7656, Acs, Zoltan, Sanders, Mark, Szerb, László
Tipo de recurso: artículo
Fecha de publicación:2019
País:España
Institución:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2117/130573
Acceso en línea:https://hdl.handle.net/2117/130573
https://dx.doi.org/10.1007/s11187-019-00140-1
Access Level:acceso abierto
Palabra clave:Competition
Entrepreneurship
National system of entrepreneurship
Total factor productivity
Technical change
Parameter heterogeneity
Common factor model
International
Competència econòmica
Emprenedoria
Descripción
Sumario:We evaluate how country-level entrepreneurship—measured via the national system of entrepreneurship—triggers total factor productivity (TFP) by increasing the effects of Kirznerian and Schumpeterian entrepreneurship. Using a database for 45 developed and developing countries during 2002–2013, we employ non-parametric techniques to build a world technology frontier and compute TFP estimates. The results of the common factor models reveal that the national system of entrepreneurship is a relevant conduit of TFP, and that this effect is heterogeneous across countries. Policies supporting Kirznerian entrepreneurship—e.g., increased business formation rates—may promote the creation of low value-adding businesses which is not associated with higher TFP rates. Policy interventions targeting Schumpeterian entrepreneurship objectives—e.g., innovative entrepreneurship and the development of new technologies—are conducive to technical change by promoting upward shifts in the countries’ production function and, consequently, productivity growth.